Husky Oil Operations Ltd., a subsidiary of Husky Energy (TSX:HSE), has been approved to develop the South White Rose Extension project off Newfoundland.
The Canada-Newfoundland and Labrador Offshore Petroleum Board made the announcement today for the project that's expected to cost about $1.2 billion.
South White Rose is estimated to contain about 33 million barrels of oil that can be recovered using subsea flow lines connected to the SeaRose production vessel.
Husky spokeswoman Colleen McConnell says first oil is expected by the end of next year.
The offshore petroleum board says the province and Ottawa have ratified the board's approval.
McConnell says the first phase will start this summer with the installation of gas injection equipment at the site 350 kilometres east of St. John's.